Mumbai, Jan. 14 -- Investment firms including Hornbill Capital and Japan's MUFG-backed Dragon Funds are evaluating a stake in lending startup KreditBee as part of a proposed $100-120 million fundraise ahead of the company's planned initial public offering, three people familiar with the matter said.

The largely primary round would mark KreditBee's first major capital raise since 2023 and comes as a growing number of profitable fintechs prepare to tap India's buoyant public markets, offering potential exits to early investors.

"The bids are due later this month and at least 3-4 funds have expressed interest in the asset," one of the people cited above said. "The round will be largely primary with a small secondary component under which a...